After All of the Account Balances Have Been Extended to the Balance

question 35

Multiple Choice

After all of the account balances have been extended to the Balance Sheet columns of the , the totals of the debit and credit columns show debits of $37,686 and credits of $41,101. This indicates that

• A)neither net income or loss can be calculated because it is found on the income statement
• B)the company has a net loss of $3,415 for the period
• C)the company has a net income of $3,415 for the period
• D)the amounts are out of balance and need to be corrected

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Definitions:

Raw Materials

The basic materials from which products are made, typically unprocessed or minimally processed before use in manufacturing.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including labor, material, and overhead costs.

Cost Information

Data related to the amount spent on the production, operation, or acquisition of a product or service.

Raw Materials Inventory Turnover

A ratio that measures how many times a company's inventory of raw materials is used and replaced over a specific period.